Dealing with International Work Arrangements 101

Ryerson actively promotes international exchange and mobility. During the spring and summer terms, some faculty conduct research and other activities outside of Canada for the University, and may also engage the services of residents of other countries. We also often see more international visitors on campus during this time.

International work arrangements can rouse a lot of questions about how to engage and pay for international work and workers. The answers are not always easy to find and can involve navigating through a range of immigration and tax laws and regulations, as well as treaties and other international agreements. Here are some fairly straightforward guidelines that can help inform you about how to deal with the most common circumstances.

Essentially, there are three things to consider when determining the relationship between the University and international workers. Once these questions are answered, it is usually clear how to engage and pay individuals. They are:

1. What is the residency status of the person doing the work?
2. Where is the work being done?
3. Is the individual an employee?

Determining residency can be fairly involved, but the main things to look at are whether or not someone owns a home or other property in Canada; if their partner/spouse and/or dependents live here; if they are employed by a Canadian employer. If one or more of these factors apply, an individual is likely a Canadian resident. Citizenship is not a deciding factor in determining residency.

However, someone who might otherwise not be considered to be a resident may be deemed a resident if they work in Canada or plan to work in Canada for 183 days or more. From a Canada Revenue Agency (CRA) perspective, Canadian residents are taxed on their worldwide income under the Canadian taxation system. So, a faculty member or researcher who works temporarily in another country for Ryerson is paid and taxed by the University in exactly the same way as if the work was done in Canada. (Please note that the country where the work is being done may still require a permit or visa for individuals to work there. Canadian employment laws may also continue to apply.)

If someone is not a Canadian resident, then they are a “non resident”. The location of where the work is being done and whether or not the individual is an employee, are important factors in determining how to engage and pay a non resident. If the work is being done in Canada for Ryerson under an employee/employer relationship then the individual will require a work permit and/or other documentation that entitles them to work in Canada. For example, non residents working as research assistants, post doctoral fellows, administrative support staff and instructors are employees. They may also be union employees depending on the type of work involved. They will need a Social Insurance Number (SIN) and will be paid in the same way as any other employee of the University.

Non resident guest lecturers (i.e. not employees or businesses) are paid as non residents through Human Resources. It is important to know that a SIN is not required for non resident guest lecturer payments, and that a 15% withholding tax applies to these payments. A T4ANR is issued by HR for non resident guest lecturer payments. Please also note that a work permit may still be required. Financial Services is responsible for payments by Ryerson to businesses, including foreign businesses.

In situations where a resident of another country is doing work for Ryerson in that country as an employee, they must be paid in accordance with the tax rules and methods for paying employees in that country. International businesses usually have global payroll systems that allow them to pay their international employees based on the specific tax rules of each country. Ryerson and other Canadian universities do not have global payroll systems. We provide funds to partner organizations (universities, hospitals, government organizations, etc.) in other countries to pay their employees. For example, if Ryerson were to hire a research coordinator to conduct specific research activities in a hospital in another country over several years, we would provide the hospital with the funds to pay the coordinator. This type of arrangement is usually facilitated by the Office of the Vice President, Research and Innovation.

Finally, the rules do not change for non resident students who come to Ryerson from outside Canada to work under international internship or other employment programs and agreements, even if the internship is part of their academic program requirements. They are treated as employees of the University, must have the required authorization to work in Canada and a SIN, and are paid and taxed in the same way as other employees - and student employees - of the University. Graduate student stipends are only paid to students if they are fulfilling degree requirements under the academic supervision of a Ryerson faculty member, for example, conducting research required under the academic program of their home institution. The Ryerson faculty member may provide a stipend to help assist the student while they fulfill their educational requirements.

This is, of course, a simplified guide to the rules for international workers and only addresses very straightforward and common situations that the University deals with on a regular basis. In more complex circumstances, please talk to your Human Resources Management Consultant who can help you to work through the specific facts, and/or may refer the matter for a legal opinion.